Special-Order Decision, Alternatives, Relevant Costs Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops, Currently, the company is operating at 90 percent of capacity. A chain of drugstores has offered to buy 32,000 boxes of Sequoia's bluebordered thank-you notes as long as the box can be customized with the drugstore chain's logo. While the normal selling price is $5.50 per box, the chain has offered just $3.10 per box. Sequoia can accommodate the special order without affecting current sales. Unit cost information for a box of thank-you notes follows: Fixed overhead is $400,000 per year and will not be affected by the special order. Normally, there is a commission of 8 percent of price; this will not be paid on the special order since the drugstore chain is dealing directly with the company. The special order will require additional fixed costs of $14,300 for the design and setup of the machinery to stamp the drugstore chain's logo on each box. Required: 1. Which alternative is more cost effective and by how much? The operating income would increase by $ 3 more Check My Work uses remaining